FG set to create Nigerium, an indigenous blockchain

• NITDA has declared its goal to develop the "Nigerium" native blockchain to safeguard national security
• The project's objective was to unite the public and private sectors to develop a domestic blockchain
• NITDA DG affirmed that the suggested blockchain will improve both the security of people's data and national security

Legit.ng journalist Zainab Iwayemi has over 3-year-experience covering the Economy, Technology, and Capital Market.

The National Information Technology Development Agency (NITDA) has announced its intention to create an indigenous blockchain called "Nigerium" to safeguard national security and preserve data.

NITDA DG said that the project's goal is to bring the public and commercial sectors together to create an indigenous blockchain. Photo Credit: Alistair Berg
Source: UGC

The decision was made in response to the disclosure that foreign developers, who might not have the nation's best interests at heart, were in charge of the majority of well-known blockchain technology, such as Ethereum.

NITDA's Director General, Kashifu Abdullahi, disclosed this at a meeting with representatives from the University of Hertfordshire Law School in Abuja. He said the project's goal was to bring the public and commercial sectors together to create an Indigenous blockchain.

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Abdullahi emphasized the need to create an indigenous blockchain since it would enable Nigeria to have complete control over its data and positions. He confirmed in a Leadership report that the proposed blockchain would enhance national security and the safety of citizens' data.

Nigerium project

A group headed by Chanu Kuppuswamy from the University of Hertfordshire Law School first came up with and presented the concept for the "Nigerium project," a blockchain developed locally in Nigeria.

According to Kuppuswamy, Nigeria could create an indigenous blockchain to tailor the technology to its needs and ensure compliance with national laws and regulations.

Additionally, Kuppuswamy cautioned about the possible dangers of depending solely on blockchains created outside of the country, using the example of Ethereum's recent drastic blockchain upgrades that were done without user input.

She pointed out that Nigeria wouldn't be able to firmly establish its influence on important blockchain decisions if it adopted a foreign blockchain.

The team recommended that Nigeria establish a Data Embassy, which would consist of a server located in a foreign nation. This would guarantee digital continuity and protect Nigeria's data from unfavorable occurrences such as cyberattacks, natural disasters, and other hazards.

Lastly, the group recommended that Nigeria investigate harmonizing blockchain technology amongst government departments in order to foster interdependence and interoperability.

Crypto firms inform customers on new transaction fees

Legit.ng reported that Nigerian cryptocurrency traders have expressed concern and frustration as crypto exchange KuCoin announced the decision to impose a 7.5% Value Added Tax (VAT) on transaction fees for Nigerian users starting July 8, 2024.

KuCoin notified its Nigerian user base via email, citing compliance with the Federal Inland Revenue Service (FIRS) requirements.

The new VAT fee has sparked a wave of reactions from the Nigerian crypto community, who feel that the government should not tax what they have not supported.

Source: Legit.ng